Thanks for this information. I'm a little disappointed (but not
discouraged) to find out that something as basic as a floppy drive is
unsupported in Mac m68k Linux. Was Apple that strange with their drive
controller hardware?

In short, no. Apple never released enough specs for their floppies for
anybody to make use of them. Just leave the floppy images and the
base2_2.tgz file on an available HFS partition; they're needed because
the installation system expects to have floppy images (but not
necessarily real floppy disks) to install from.

Ok, I went that way. But when I started Penguin to being the installation,
I made it all the way to the "Fasten your seat belts.." message, and then
MacOS returns a Bus Error and the machine freezes solid. Is this a problem
with the latest Penguin? Any other ideas?

For that matter, which version of Mac OS is preferred for the Mac bootable
system? 6.0X, 7.0, 7.5? Does it really matter?